When North Carolina couples end their marriage, dividing up the assets and dealing with financial matters can be the most contentious and difficult parts of the divorce. This can be especially true for retirement funds, which often are the largest single financial item at stake for both partners. Given how important a 401(k), pension plan or IRA can be to the financial future of both parties, handling them during negotiations and the divorce settlement can be a delicate matter.
High-profile divorces across North Carolina and the rest of the country are encountering a growing area of conflict regarding asset valuation: art. Works of art have been skyrocketing in value in recent years. This has complicated property division in divorce cases given its somewhat subjective evaluation process.
For people in North Carolina and across the United States, divorce can lead to an array of financial stresses and major life changes. One of these changes can include the selling of the marital home in order to divide the value of the proceeds accurately among the divorcing spouses. Moving and selling a home can carry unique stresses when they accompany the end of a marriage.
A couple in North Carolina who is getting a divorce may need to divide their house. In many cases, this will require refinancing. Refinancing is usually necessary to remove one person from the mortgage. Otherwise, that spouse could remain responsible for the home regardless of what is agreed in the divorce, and this can be harmful to that person's credit.
North Carolina couples who are getting a divorce can avoid some common financial mistakes. One of those may be keeping the home in exchange for a more liquid asset of equal value. In looking at the value, people may fail to account for the cost of maintaining the home. Accounting for this means the house might actually be worth less than the retirement account or other liquid asset for which it was exchanged. Furthermore, many people may struggle after a divorce to maintain the family home on a single income.
North Carolina couples who are getting a divorce will likely have to untangle many joint assets. If a couple has a shared car insurance policy, this is one more thing to be separated.
One of the first questions many North Carolina residents have when they start the divorce process is about what will happen to the marital home. In some cases, a person may want to retain ownership of the home, especially if there are kids involved and this can help keep the home life stable for them. On the other hand, a person may want his or her share of the equitable distribution of other assets so that a new home can be purchased quickly.
Some North Carolina couples who are getting a divorce may have a retirement account that needs to be divided. This might require a document called a Qualified Domestic Relations Order. Dividing a retirement account may incur taxes and fees, and people may consult a certified divorce financial analyst at this stage. Working with a financial analyst may help ensure a more efficient transfer of funds with minimal costs.
When a couple gets married, they always hope that the union will be forever. However, as many North Carolina residents know, some marriages end in divorce, which leads to questions about marital property and division of wealth. In cases where one of the spouses has inherited money in a trust fund, the language of the actual trust might mean the difference between him or her being able to protect that wealth or having to share it with his or her ex-spouse.
When North Carolina couples decide to divorce, they will need to think about how they will handle their marital home. If people are not careful, they may end up making mistakes that could cost them lots of money.